Catalogs and par values are a thing of the past! The new Reorder Report is a forecasting tool to estimate the minimum suggested order to maintain a targeted weeks of supply. We created this report to enable vendors to have data-driven conversations with their retailers.
Calculating the minimum suggested order:
We calculate the average units per day using data for when the product was actually in stock. Zero stock days are NOT included in this calculation.
The average units per day is then used to determine the average units per period (think weeks of supply) based on the applied filter (we're using 2 weeks in the example below). The average units per period is then compared to a sample of the previous 5 periods (10 weeks if a 2-week filter is applied) and we use the median of those averages. This ensures these numbers are not impacted by holidays or seasonality.
3. The units currently in stock is subtracted from the average units per period and then rounded up to the nearest whole number. This provides us with the minimum suggested order amount.
This report is very beneficial for both vendors and retailers:
Vendors - It allows them to become proactive instead of reactive, avoiding out of stock days and maximizing sales.
Retailers - Streamlines the ordering process and removes the guessing, while also minimizing out of stock days.
Bridge: Details Dashboard
Bridge: Triage Report
For additional resources and help articles please visit the Headset Help Center.